PAC to probe Sabah Pan Borneo Highway project following AG report's findings

The Public Accounts Committee (PAC) will launch an investigation into the Sabah Pan Borneo Highway project following delays and weaknesses found in its implementation and monitoring.

This comes after the 2026 Series 2 Auditor-General’s Report (AG report) highlighted a series of shortcomings in the project’s planning, implementation and oversight that contributed to over a decade of delays...

The Public Accounts Committee (PAC) will launch an investigation into the Sabah Pan Borneo Highway project following delays and weaknesses found in its implementation and monitoring.

This comes after the 2026 Series 2 Auditor-General’s Report (AG report) highlighted a series of shortcomings in the project’s planning, implementation and oversight that contributed to over a decade of delays.

PAC chairperson Mas Ermieyati Samsudin said the probe would examine the management, financial governance and physical implementation of the first phase of the Sabah Pan Borneo Highway project.

She said the committee was particularly concerned that 94.6 percent, or RM10.547 billion, of the project allocation had been paid out despite the project recording only 11.4 percent physical progress.

“PAC will thoroughly examine how such a situation could occur, despite the existence of various oversight committees established at both the state and federal levels.

“What PAC is questioning is the adequacy of the existing monitoring system that approved payments for the project; even though it is clear that the physical progress on the ground does not correspond to the amount of public funds already spent,” she said during a press conference at Parliament today.

Mas Ermieyati (above) said the committee would summon witnesses from the Works Ministry, Public Works Department (PWD), including its Sabah branch, and other relevant agencies to testify during its proceedings.

She added that it would not hesitate to refer its findings to the MACC and police for further investigation if the probe uncovered indications of misconduct, corruption or abuse of power.

“PAC is committed to conducting an independent, transparent, and comprehensive investigation, ensuring that every sen of public funds is spent prudently, responsibly, and in compliance, to achieve the nation’s development objectives,” the Masjid Tanah MP added.

A decade of delays

The Pan Borneo Highway project began on April 11, 2016, and was initially scheduled for completion within 69 months, by Dec 31, 2021.

The 706km project spans several routes, including Sindumin to Kota Kinabalu and Kudat, Ranau to Mile 32 Sandakan, and Mile 32 Sandakan to Tawau.

However, prolonged delays have left the project unfinished to date, while the total contract cost for Phase 1 has risen from RM17.91 billion to RM18.96 billion. This is an increase of RM1.05 billion, or 5.9 percent.

READ MORE: PAC to probe Sabah Pan Borneo Highway project following AG report’s findings

The report, released on Oct 5, identified several weaknesses in the project, including shortcomings in the Project Delivery Partner (PDP) model, failure to ensure construction sites were ready before work began, poor contractor and consultant performance, design changes and utility relocation issues.

These issues have contributed to delays, with only four of the project’s 35 work packages, or 11.4 percent, completed as of March 31.

The remaining 31 packages, worth RM16.32 billion, were still under implementation. Of these, nine were classified as “sick” projects, 13 were behind schedule and nine were ahead of schedule.

On Oct 8, Works Minister Alexander Nanta Linggi (above) attributed the delays to changes in its implementation model, the Covid-19 pandemic, land acquisition and utility issues, and contractor performance.

He also said the change from the PDP model to a conventional procurement method in 2019 was among the factors that delayed the project.

“The termination of the PDP model in 2019 also required a new procurement process before the 15 Phase 1A contractors could be awarded contracts in 2021,” he added.

Yesterday, Deputy Chief Minister Joachim Gunsalam (above) claimed that the 11.4 percent completion rate for the Sabah Pan Borneo Highway project highlighted in the AG report did not reflect the actual physical progress on the ground.

"Although the 11.4 percent figure is correct in terms of handed-over packages, it does not reflect overall progress as other packages are actively being built, with some alignments recording between 90 and 93 percent physical progress," he stressed.